Sofia, Bulgaria – The Confederation of Independent Trade Unions in Bulgaria (CITUB) is calling for a 10% salary increase for public sector workers in 2025, a move that would require an additional 1.8 billion leva to be allocated in the national budget.
The union’s president, Plamen Dimitrov, made the announcement on Wednesday, highlighting the pressing need for reform in Bulgaria’s income policies, including the introduction of a “living wage” standard tied to the cost of living for workers and their families.
According to CITUB’s latest data, the average Bulgarian worker now requires 1,453 leva per month to meet basic needs. Dimitrov argued that the current minimum wage is insufficient to support a decent standard of living, and it’s time for the government to introduce a wage structure that reflects economic realities.
“The goal is to ensure that workers are able to live with dignity, with wages that support not just survival, but a decent quality of life,” Dimitrov said during a press briefing.
He emphasized that a “living wage” should replace the current reliance on the minimum wage as a benchmark for income policy. “We must transition to a model where the living wage, not the minimum wage, dictates the level of income for public sector workers,” he added.
Decoupling Social Payments from Minimum Wage
Dimitrov further outlined CITUB’s vision for 2025, which includes severing the ties between social payments and the minimum wage.
He argued that payments, benefits, and wages for individuals with disabilities, along with other social payments, should no longer be connected to the minimum wage.
“The minimum wage should not be the barometer for social assistance or disability payments,” Dimitrov said. “We need to adopt the living wage as the standard that reflects what is actually needed to live decently in Bulgaria.”
He suggested that the minimum wage should gradually be brought in line with this living wage benchmark, allowing for a more comprehensive and sustainable approach to income policy. This shift would provide workers with the financial security necessary to keep pace with inflation and the rising cost of living.
Pension Reform and Insurance Contributions
In addition to salary increases, CITUB is pushing for significant reforms to Bulgaria’s pension system. The union is proposing that the maximum monthly insurance income increase to 4,275 leva, reflecting a 14.5% growth in average insurance income this year.
CITUB is also advocating for a 10% increase in the pension ceiling, raising it to 3,740 leva. Dimitrov emphasized the need for pensions to be adjusted using the “Swiss rule,” which currently projects an 8.7% increase from July 1, 2025, as calculated by the Ministry of Finance.
“Pensioners in Bulgaria deserve dignity after years of hard work. The adjustments we’re proposing are designed to ensure that their pensions are adequate and fair,” Dimitrov said.
To further bolster the country’s social security system, CITUB suggests gradually increasing pension contributions over the next two decades.
This proposal includes an annual 1% increase in contributions, with alternating increments going to the State Social Insurance Fund and the second private pension pillar. By 2045, the union aims for pension income to replace 85% of a worker’s previous earnings.
“This is a long-term solution to secure the future of Bulgaria’s pension system,” Dimitrov said, stressing the need for shared responsibility between employers, employees, and the government. “If we do not act now, the consequences will be devastating for future generations.”
European Directive on Minimum Wage
Dimitrov also warned that Bulgaria must transpose the European directive on the minimum wage by November 15, 2024, to avoid financial penalties from the European Commission.
The directive mandates that EU member states set their minimum wage levels based on specific criteria, including the cost of living and economic productivity.
CITUB has expressed openness to discussing the directive with employers, many of whom are concerned about the impact of a 15.4% increase in the minimum wage, which would raise it to 1,077 leva in 2025.
Businesses have argued that such a steep increase could harm the labor market and stifle economic growth.
However, Dimitrov dismissed these concerns, pointing out that the average wage in Bulgaria grew by 17% over the past year, suggesting that the economy is strong enough to accommodate wage increases.
“Companies, including state institutions, are already adjusting wages,” he noted. “The 15.4% increase is not just feasible—it’s necessary to ensure that workers can cope with rising living costs.”
Conclusion
CITUB’s ambitious proposals for salary increases, pension reform, and the introduction of a living wage aim to reshape Bulgaria’s income policies and improve the standard of living for workers across the country.
While the government and employers may push back on some of these reforms, Dimitrov remains confident that these changes are crucial for Bulgaria’s future.
“Our workers deserve wages that reflect their hard work and the cost of living,” Dimitrov said. “It’s time to move away from outdated systems and adopt policies that ensure a fair and decent living for all Bulgarians.”